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Monday July 22, 2024

Hubco subsidiary joins hands with Chinese giant BYD to introduce EVs

By Our Correspondent
June 22, 2024
A representational of an electric car. — Reuters/File
A representational of an electric car. — Reuters/File

KARACHI: Mega Motor Company, a subsidiary of Hub Power Company Ltd (Hubco) is entering the business of electrical vehicles (EVs) in Pakistan in association with Chinese giant BYD Auto Industry Company Limited.

Hubco, in a notification to the PSX on Friday, disclosed, “Hub Power Holdings Limited, a wholly owned subsidiary of Hub Power Company Limited, through its associated company, Mega Motor Company (Private) Limited, is entering into a new line of business in electrical vehicles with BYD Auto Industry Company Limited in Pakistan.”

It further said, “This new venture will include the execution of definitive agreements and purchase of assets and is subject to corporate and regulatory approvals and consents.” BYD (Build Your Dreams) Auto is the world’s leading EV manufacturer of passenger cars and electric buses.

In 2023, BYD sold 1.57 million electric vehicles, an increase of 73 per cent YoY, in addition to selling 1.44 million units of hybrid vehicles.According to Arif Habib Ltd Research, the completion of this new venture will involve signing definitive agreements and acquiring assets, contingent on corporate and regulatory approvals.

“For every 5,000 annual unit sales with a Rs6 million price tag and net margins at 10 per cent, incremental earnings impact on HUBC is likely to be Rs2.31 per share assuming 100 percent stake in the company,” it said.